British oil and gas firm Tullow Oil Plc (TLW.L, TUWOY.PK, TUWLF.PK) said Wednesday it expects 'record' revenues in the first half. The company added that it is well placed for continued success over the remainder of the year. The shares declined around 2% in the morning trade on London Stock Exchange.
In its trading statement for the first half ended June 30, the company said it expects total revenue for the first half to be of the order of $1.15 billion, higher than prior year's $1.06 billion.
Group working interest production for the first half of 2012 averaged 77,400 barrels of oil equivalent per day or boepd. West & North Africa's total production averaged 54,200 boepd and production at Europe, South America and Asia totaled 23,200 boepd.
Production in Europe was broadly in line with expectations in the first half of 2012. The company in March had announced its intention to begin a process to divest its Asia businesses.
The realized commodity prices were in line the prior year levels, the company noted. The realized oil price was about $114.2 per barrel - pre hedge and $110.6 per barrel - post hedge. The realized UK gas price was approximately 58.4 pence/therm.
Tullow Oil added that its pre-tax results would be positively impacted by a pre-tax profit on disposal of $700 million related the completion of Tullow Oil's farm-down of two thirds of its Uganda interests to Total SA (TOT, TTFNF.PK, TTA.L) and CNOOC Ltd. (CEO) for a headline consideration of $2.9 billion.
Also, Tullow's total exploration write-off and asset value reduction for the first half is expected to be of the order of $440 million.
Further, the company said its capital expenditure for first half amounted to $0.9 billion and that it remains on track for 2012 expenditure at $2 billion.
The company is slated to release its half-yearly results on Wednesday, July 25.
Chief Executive Aidan Heavey said, "Tullow's industry-leading exploration success has continued in the first half of 2012 with a major discovery in Kenya, the fourth new basin the Group has opened in five years. We have also completed the $2.9 billion farm-down in Uganda, and made good progress on our development projects in Ghana and Uganda."
The company added that the on-going remediation of the Jubilee field is progressing well and significant exploration wells are planned for the East African Rift basins, the West African Transform Margin and the twin basins in South America in the second half of 2012.
"With an exciting programme ahead, Tullow is well placed for continued success over the remainder of the year," Heavey said.
For the full year 2012, group working interest production is forecast to average between 80,000 and 84,000 boepd with an exit rate of over 90,000 boepd.
In London, Tullow Oil shares are currently trading at 1,502 pence, down 29 pence or 1.89 percent.
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by RTT Staff Writer
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